Ola Electric's Initial Public Offer (IPO) may be launched on August 2. Investors will be able to bid till August 6. The company is planning to launch the anchor book on August 1.

Ola Electric IPO likely to open on August 2: Company will raise ₹5,500 crore

Ola Electric shares are likely to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 9, making it the first listed electric two-wheeler company.

Last month, the Securities Exchange Board of India (SEBI) approved the IPO of Ola Electric. Ola is India's largest electric two-wheeler manufacturer. The Bengaluru-based company filed a draft red herring prospectus (DRHP) for the IPO with SEBI on December 22, 2023.

According to the DRHP, Ola Electric has proposed to sell 9.52 million shares through an offer for sale and raise ₹5,500 crore by issuing new shares. The company's founder Bhavesh Aggarwal alone is going to sell 4.73 crore shares.

Ola Electric currently has a market share of around 32% in the electric two-wheeler category, making it the leader in the category.

What is DRHP?

DRHP (Draft Red Herring Prospectus) is a document that contains essential information about the company bringing an IPO. It contains important information such as the company's finances, promoters, investment risks, reasons for raising funds, and how the funds will be used. It is submitted to SEBI.

What is IPO?

When a company issues its shares publicly for the first time, it is called an Initial Public Offering (IPO). The company needs money to expand its business, and for this it raises money by selling some shares to the public or by issuing new shares. Through IPO, the company raises capital from the public.